May 18, 2014
It’s hard, oftentimes, to know if you’re spending too much or too little as you conduct business which is why this recent data from Mintel Research is so helpful.
In interviews with specialty food producers*, Mintel Research asked for a breakdown of their expenses. As you can see, and as you are likely already aware, the ingredients, packaging, and labor that go into the production of your food product constitute for a large portion of food business expenses.
You’ll note, however, that marketing spend is not at $0. That tends to be one area where food entrepreneurs try to skimp. While you never want to be spending wildly, you need to be prepared to make smart, strategic marketing decisions that may, from time to time, cost you a little bit of money, if you want your business to grow.
*The food manufacturers interviewed for this study were, for the most part, beyond the start-up phase. As such, their expense breakdowns may differ slightly from yours but it’s worthwhile to have a rough idea of what they’re spending and see how your expense percentages compare.